Trinity Mirror, the owner of the Daily Mirror, is considering a major
increase in cost cuts which could lead to significant job losses, despite a
recent boost from rival News of the World's closure.

The national and regional newspaper group, set to report its half-year results on August 12, is expected to increase cost savings to about £25m this year.

The move is likely to trigger job losses, a large number of which would be journalists, although sources said that synergies such as outsourcing were also being explored and job cuts were not the only solution.

Earlier this year, the company, which has been through a series of cuts, increased its cost savings target for the year to £15m. That could now be increased by around another £10m.

The newspaper group is expected to say at its interim results presentation next month that it has benefited to the tune of millions of pounds from a circulation and advertising increase at its national Sunday titles, the Sunday Mirror and The People, following the News of the World'sclosure.

However, some wider factors, such as volatile advertising conditions and the cost of newsprint, are still putting immense pressure on the group and it recognises significantly increased cuts will be necessary.

Trinity Mirror's management has held a series of meetings about the extent of cost cuts in recent weeks. The group employs more than 6,000 people in around 60 locations in Britain. Despite difficult advertising conditions, Trinity Mirror reported a rise in full-year pre-tax profits to £123m in March.

This was up from £42m the previous year and was boosted by cost savings following the acquisition of the publisher of the Manchester Evening News from Guardian Media Group.

Last week, Trinity Mirror launched a review into editorial standards following a shares slump of 9.8pc after allegations were made that phone hacking had taken place at the Daily Mirror.

Separately, Sly Bailey, the chief executive of Trinity Mirror, has in recent months faced criticism over the size of her salary. Ms Bailey's base salary has risen by 36pc in the past six years from £550,000 to £750,000 and her total remuneration package has increased from £1.23m to £1.71m.

However, at the time of the criticism in June, Trinity Mirror, which declined to comment on the increase in cost savings, said that there had not been any contact from shareholders with the board over pay.